Is the iPhone an eligible work related exempt benefit? It seems to meet the definitions of a laptop computer as per previous ATO rulings:

- 'portable and small enough to be operated while held on one's knees';
- 'a small, lightweight, portable computer';
- 'easily carried or conveyed by hand';
- easily portable and designed primarily for use away from an office environment;
- smaller and lighter than even the most compact desktop computer;
- can operate without an external power supply; and
- are designed as one complete unit.

The ATO has indicated that tablet PCs with touch interfaces fall within the definition.

Alternatively, the ATO has ruled that a PDA is the same as an electronic diary, and thus an exempt benefit. Again, the iPhone seems to meet all the criteria for a PDA, although the issue of 'primary function' makes this less clear.

On the other hand, it's a phone. On the other, other hand, so is my laptop if I'm in range of a wifi network and use VoIP.

Anybody had any formal advice from their tax accountant about this?

I think you'd need the ATO to give you a ruling rather than an accountant. Accountants can offer their understanding of a definition, but when it comes down to it only the ATO will be able to give you a concrete answer.

I had a similar thing going on years ago. I was audited and the ATO had a different perception of one claim to the one that my accountant had. In the end it was approved, but it took a bit of backwards and forwards for them to finally agree.

and yet another argument for 1 flat tax for everybody....

You'll need to get the ATO to issue a ruling on this, though if they do chances are it will be a private ruling for your use only.

If enough people ask, they'll probably make a definitive statement, as they did for the question of whether iPods could be tax deductible if you used the USB memory features for work purposes (whcih I don't believe you can).

aren't smart phones exempt benefits? surely the iPhone falls into this catergory.

Mobile phones are an exempt benefit. The catch is that, unlike PDAs and laptops / notebooks, you need to demonstrate that the phone is primarily for work purposes. I'm not sure I can do that

How about iPod touch? A colleague of mine was wondering if he would have to have it classified as a PDA.

An ipod is simply an external hard drive on my books. Who's going to know it just happens to play music?

so even if i worked in a kitchen where you would obviously not need a laptop/pda, it would still be an exempt benefit?

the ato when the audit you!

i hope that i can put my on my tax....

For a laptop, it just has to be 'in respect of' your employment. This is the bar for other items like calculators, diaries, brief cases etc as well. However, the bar is set higher for mobile phones - "a mobile phone or a car phone is only an eligible work related item if the phone is primarily for use in the employee's employment." The only caveat for a laptop is that you can only claim one laptop as an exempt benefit each year.

No argument here.

Flat tax with no deductions would be great (just like Hong Kong).

It'd put some accountants out of work due to things being much simpler, but it seems like a worthwhile sacrifice

I would think that it would fall under the same category as a blackberry.

I am salary sacrificing my ipod touch, just had to justify what it could do - more than an electronic diary/calculator/pda.

it will be interesting to see if the ATO make a ruling to allow this, currently they have specifically ruled that iPods cannot be salary sacrificed. they have yet to rule on iPod touchs, they may be persuaded by the extra functionality.

you may get away with it anyway, otherwise you will get a nasty surprise!